The draft RTS focus on four critical areas under the EU's revamped AML/CFT regime:

• Direct supervisory oversight by AMLA - The newly established EU Authority for AML/CFT (AMLA) will decide which financial institutions will be directly supervised. This determination will involve a dual review process, assessing institutions' cross-border operations and risks under a harmonised methodology.
• Risk assessment - A standardised methodology will be introduced for national supervisors to assess institutions' inherent and residual risks.
• Customer due diligence procedure - Institutions will adopt a flexible yet structured approach to customer due diligence (CDD). The RTS outline the types of documents and information sources to be used, offering sufficient latitude but remaining in compliance with the new AML Regulation.
• Sanctions and enforcement guidelines - A uniform methodology is proposed for imposing fines and administrative measures. This would ensure proportionate, dissuasive, and effective penalties while harmonising enforcement standards across the EU.

The new AML/CFT RTS aim to streamline regulatory processes and enhance supervisory cooperation across Member States. A significant goal of the proposed RTS is to alleviate the regulatory burden on cross-border financial institutions. Aligning information requests and supervisory practices will facilitate smoother compliance while preserving robust anti-financial crime controls.

This consultation marks an essential step toward implementing the new AMLA and extending the EU’s enhanced commitment to fighting financial crime. Institutions and supervisors are encouraged to actively engage to ensure a comprehensive and effective regulatory design.

The consultation period is open until 6 June 2025, inviting feedback from stakeholders across the financial industry.

EBA’s news release can be found here and the consultation paper can be accessed here.